IS USD/JPY Nearing End of Triangle Pattern?
USD/JPY appears to be putting the final additions on a bearish triangle pattern. Under the guidelines of the pattern, price may soon pivot lower towards new lows below 111.60.
If correct, this triangle would be an X wave of a W-X-Y sequence. This corrective sequence appears incomplete and suggests another strong move lower to new lows.
The risk to the pattern is set at the wave (c) high of 114.96. A move above 114.96 suggests the pattern cannot be counted as illustrated and some other pattern is developing.
In Elliott Wave triangles, many times wave (e) will penetrate the trend line connecting the ends of waves (a) & (c). This trend line comes into play near 114.55.
So long as prices are below 114.96, wave relationships and targets exist near 111.60, 110.80, and 108.50.
Join Jeremy in his Monday US Opening Bell webinars to discuss this market.
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Lastly, check out our longer-term forecast for US Dollar and Yen.
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---Written by Jeremy Wagner, Head Trading Instructor, DailyFX EDU
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.